The policy paper, ESG Priorities for UK Companies 2022, stresses the importance of decision-making criteria for all types of organisations – not only as a means of winning the trust of stakeholders but also as barometers of effective business management.

The IoD provides a checklist of ESG priorities which are worthy of boardroom discussion in 2022, focusing on stakeholders and business purpose, sustainability, inclusion and diversity, governance and executive remuneration.

IoD director of policy and corporate governance, Dr Roger Barker, said: ‘A strong ESG profile is attractive to potential investors, lenders, employees and customers, and helps build the brand of the organisation. 

‘Conversely, weak ESG performance is a red flag. It could indicate that the company’s leadership is not well aligned with the interests of wider society – bringing its longer-term sustainability into question.’

Altho